Returning an enforcement document to the claimant is not grounds for lifting the seizure of the debtor’s property - SC GC

The legislation does not provide for the obligation of the state (private) executor to lift the seizure imposed on the debtor's property in case of return of the enforcement document to the creditor, since such return does not indicate the end of the enforcement proceedings and in this case the creditor has the right to reapply for enforcement of the court decision, which has not been executed, within the time limits established by law. 

This conclusion was reached by the Grand Chamber of the Supreme Court in a case challenging the inaction of a state enforcement officer in failing to release the seizure of property upon returning the enforcement document to the creditor.

In the circumstances of the case, in 2013, as part of the enforcement of a court decision to recover a loan debt, the debtor's property was seized. A letter from the State Enforcement Service (SES) informed her that the materials of the enforcement proceedings had been destroyed due to the expiry of their storage period. The applicant applied to the SES with a request to lift the arrest, but was denied because the debt and the enforcement fee remained unpaid.

The courts of previous instances dismissed the complaint, as the applicant failed to prove the state enforcement officer's obligation to lift the seizure of her property when returning the enforcement document to the creditor.

Upon consideration of the case, the Grand Chamber of the Supreme Court noted that both the termination of enforcement proceedings and the return of the enforcement document to the creditor are forms of completion of enforcement proceedings, but they have different legal grounds and, accordingly, different legal consequences.

The legislator has clearly provided for two cases when the state (private) enforcement officer is obliged to lift the seizure of the debtor's property and indicate this in the relevant resolution, namely: in case of termination of the enforcement proceedings and in case of return of the enforcement document to the court or other body (official) that issued it.

The legislation does not provide for the obligation of the state (private) executor to lift the seizure imposed on the debtor's property in case of return of the enforcement document to the creditor, since such return does not indicate the end of the enforcement proceedings and in this case the creditor has the right to reapply for enforcement of the court decision, which has not been executed, within the time limits established by law. 

At the same time, the SC GC notes that the legislator in the Law of Ukraine No. 1404-VIII ‘On Enforcement Proceedings’, which entered into force on 5 October 2016, provided for cases in which the seizure of property is lifted simultaneously with the return of the enforcement document to the creditor (part 3 of Article 37 of the Law).

Thus, return of the enforcement document to the creditor is not a ground for lifting the seizure of the debtor's property (except as provided for in part 3 of Article 37 of the Law).

In this case, the courts of previous instances, when considering the complaint, did not establish the specific circumstances and grounds for the completion of the enforcement proceedings, on which both the satisfaction of the debtor's application for the lifting of the arrest and the determination of the official authorised to lift such an arrest depend.

The SC GC indicated that during a new trial, the court of first instance should take into account the conclusions contained in this resolution, establish the specific circumstances and grounds for the completion of the enforcement proceedings within which the applicant's property was seized, and, based on this, make a reasoned decision to satisfy or dismiss the complaint.

Resolution of the Grand Chamber of the Supreme Court of 14 May 2025 in case No. 2/1522/11652/11 (proceedings No. 14-137цс24) - https://reyestr.court.gov.ua/Review/127605064.

This and other legal positions of the Supreme Court can be found in the Database of Legal Positions of the Supreme Court - https://lpd.court.gov.ua.